Should double brokering be made illegal?

Discussion in 'Freight Broker Forum' started by ttnae, Aug 14, 2020.

  1. ttnae

    ttnae Light Load Member

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    OK, so I'm on my 20th is collection from a broker in my 20 years in business. Each of these times that I've had to peel back the layers of payment I've discovered that the broker has double brokered the load. In every case, when I call the customer (shipper/consignee) they have steered me to another broker who gave it down the line.
    If brokers are allowed to rebroker freight, I feel that this is harmful to the carrier. There shouldn't be anyone between the carrier and the customer but to add more unnecessary layers? I think that the gov't needs to recognize this as an unnecessary economic hardship on carriers outlaw it.
    Making rebrokering illegal would help clean out many of these unnecessary players and streamline the supply chain.
     
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  3. PPDCT

    PPDCT Road Train Member

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    Double brokering is illegal, but is distinct from co-brokering, which is done with full knowledge of the 'main' broker. The act is in the deception. I'm trying to find the relevant laws, which may take me a bit. That said, I don't like either, and have been known to drop the hammer when someone tries to double broker me.
     
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  4. PPDCT

    PPDCT Road Train Member

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    49 U.S. Code § 13902 - Registration of motor carriers - Outlines that carriers cannot broker transportation services unless registered as a broker. (See (a)(6))
    49 U.S. Code § 13904 - Registration of brokers - Outlines requirements to register as a broker

    Chiefly, this primarily affects people representing themselves as asset-based carriers, as written. I'm *pretty sure* that there's something, somewhere that also deals with brokers misrepresenting themselves as carriers, but I'll need to do some more digging to find that.
     
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  5. ttnae

    ttnae Light Load Member

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    Thank you. I was looking for these but I'm saying that the gov't needs to make 3pl's, brokers and any others non carriers that are in the chain, go direct to truck and hold them accountable for not doing so. If the "Logistics provider or broker" can not find a truck then they have failed. If the only thing that they have done is to provide another broker then they have failed. The shippers SHOULD see this way as well.
     
  6. Long FLD

    Long FLD Road Train Member

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    If broker B poses as a motor carrier to get the load from broker A and then brokers the load out again how is broker A supposed to know?
     
  7. Gdog66223

    Gdog66223 Road Train Member

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    That how the Landstar russians do it.
     
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  8. wichris

    wichris Road Train Member

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    Because his authority would be just a broker.
     
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  9. Long FLD

    Long FLD Road Train Member

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    If they’re a motor carrier book it under that, shuffle some paper around, post it on a load board.
     
  10. wichris

    wichris Road Train Member

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    Then the person who takes a load from a carrier, not a broker is a fool.
    What they do is take a load as a carrier, pass it off to a brokerage they have or work with.
     
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  11. PSM379

    PSM379 Light Load Member

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    That is what they do, I have also made it aware to another broker once and his reply was “I told them too” that San Antonio office are a bunch of scum bags and I tell them every time I have a chance. They will lie even when caught red handed.
     
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